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What is RERA Registration?

RERA stands for Real Estate Regulatory Act which was introduced with a motive to institute regulatory authorities at the state level.

Furthermore, the Real Estate Regulatory Act, 2016 makes it mandatory for every builder and promoter to register their real estate projects to sell, market, advertise, book, or purchase.

The RERA registration regulates the contract between the buyer and seller to ensure the sale of apartment, building, or plot in an efficient as well as transparent manner.

Moreover, it proposes to ascertain high accountability towards the customer, and importantly reduce delays and frauds as well as the high transaction costs.

What are the needs for introducing RERA in India?

RERA plays a critical role in fulfilling the demands and other requirements for infrastructure and housing development.

Earlier in India, the real estate sector was quite unorganized and unregulated. Besides, there’s a lack of professionalism and standardization.

Furthermore, there was an inadequate consumer protection mechanism that led to profiteering and exploitation by unscrupulous builders.

Therefore, with a need to protect the interest of both buyers and sellers of the real estate sector, the RERA was introduced.

Objectives of the establishment of RERA Registration in India

Objectives of introducing the Real Estate Regulatory Act are as follows:

  • To ensure the sale of real estate projects such as plots or buildings or apartments in a transparent and efficient manner;
  • For promoting good governance in the real estate sector and build confidence in the investors;
  • To establish better and immediate dispute resolution mechanism;
  • For ensuring the liability towards the buyer and protecting their interest;
  • Create transparency among both parties and ensure fair-play;
  • Avoid delays and fraud;
  • Ensure the equal flow of information between the buyer and developer;
  • Introduce PAN India standardization and professionalism.

Who all needs to apply for RERA Registration?

RERA registration applies to Real Estate Agents, Promoters, and Projects subject to the following criteria:

  • The act extends to all commercial and residential real estate which also include the plotted development;
  • Every commercial and residential project which exceeds 500 square meters or more than eight units/apartments;
  • Even the local promoters with small projects also require RERA registration;
  • Every on-going project that doesn’t have any completion certificate needs to apply for RERA within three months;

Documents required for RERA Registration

The document requirement for RERA registration varies from state to state. Here are the common documents required for the RERA registration:

Documents required by the developers for registering an on-going project:

  • Development Plan;
  • Copy of the PAN card;
  • Aadhaar card of the promoter;
  • Project details such as the layout, location, and sanctioned plan of the project;
  • Basic details of the individual such as name, address, contact details, and photograph, in case the promoter us individual;
  • If you’re an entity other than the individual, you need to provide details of partners, chairman, directors, authorized person, name and address of the entity, and type of entity;
  • Audited financial statements and Income Tax Returns (ITR) of the last 3 years;
  • Details of the engineers, architect, and others;
  • Title Deed along with the chain of title;
  • Ownership documents such as proforma of the allotment letter, conveyance deed, and sale agreement;
  • Details of construction technology type, designing standards, resistant measures, in case of uncertain events, etc.;
  • Consent detail of the property owner along with the development agreement, collaboration agreement, title deed, joint development agreement, development agreement, or any other agreement involved between the owner and promoter;
  • Other documents as required.

Documents required for Real Estate Agent Registration

  • Copy of the PAN card of the real estate agent;
  • Copy of the Aadhaar card;
  • Copy of the address proof;
  • Basic details of the real estate agent such as name, address, contact details, and photographs of partners/directors/individual.

What is the process of obtaining RERA registration?

As per the RERA Act, every promoter and agent needs to register themselves with the state RERA authority. There are different registration procedures for real estate agents and projects. Therefore, we will understand both of them separately.

The procedure for RERA registration of Projects

Promoters need to follow the following steps for the registration of RERA projects:

  1. Organize a board meeting for passing the board resolution w.r.t the following:
  • RERA registration application filing;
  • Separate bank account opening so that the construction cost can be covered;
  • Approval of the sale agreement, sale deed, and allotment letter.
  1. Obtain a title search report related to the proposed land.
  2. Get all the mandatory licenses as well as NOC from the government authorities such as the National Highway Authority of India, Fire Department, Airport Authority of India, National Authority Disaster Management Authority, etc.
  3. Next, the applicant needs to file the application Form A with the respective authority.
  4. Pay the required fees for RERA registration.

Note: In Maharashtra, one can file the online application for RERA registration. However, in Uttar Pradesh, physical copies of the documents are supposed to be dispatched.

  1. As per Section 5 of the Real Estate (Regulation and Development) Act, 2016, the registration certificate of the project could be obtained in Form C.

RERA registration for Real Estate Agents

Real estate agents need to follow the following steps:

  1. File an application form along with the required fee and essential documents.
  2. After you have filed the application, the regulator will issue you a registration number which shall be mentioned in the documents pertaining to the sale of the property.
  3. Maintenance of documents such as Books of accounts, records, etc. on a quarterly basis.
  4. You need to provide detailed information and documents related to the project you are indulged into with the buyer.
  5. While filing the application, you must ensure that the agent may be suspended, if he misinterprets the facts or frauds during the RERA registration.

Consequences of not obtaining RERA registration

As per Section 59 of the RERA Act, 2016, if anybody continues the real estate activities without RERA registration, a penalty of up to 10% of the calculated project cost will be imposed.

However, if the default continues, an extra fine of up to 10% of the calculated project cost will be imposed or three years of imprisonment or both.

As per Section 31 of the RERA Act, the aggrieved person can file a complaint with the authority in case the promoter violates the RERA provisions. The authority has the power to levy penalties or take the measures as may be deemed fit.

However, in some cases, the authority may issue interim order(s) refund of the amount that the promoter has received.

Frequently Asked Questions (FAQs)

Ans: Yes, RERA registration protects the interests of the buyers. It reduces the chances of fraud as well as delays. Furthermore, it makes it compulsory for the developers to modify the faults in the construction which was observed after the possession.

Ans: Yes, RERA covers all kinds of project be it commercial or residential also including buildings, shops, and offices.

Ans: The RERA registration stands valid until the project completes.

Ans: The developer needs to display the RERA registration number while promoting and on advertisement ads.

Ans: Yes, the registration of all the complexes is mandatory or the seller won’t be able to sell it.

Ans: In case the builder doesn’t deliver in the prescribed time period, they would have to heavy penalties for the same.

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